Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Act current to 2016-05-12 and last amended on 2015-02-26. Previous Versions

Marginal note:Effects of annulment
  •  (1) Unless the court otherwise orders, where a consumer proposal is annulled or deemed annulled, the consumer debtor

    • (a) may not make another consumer proposal, and

    • (b) is not entitled to any relief provided by sections 69 to 69.2

    until all claims for which proofs of claim were filed and accepted are either paid in full or are extinguished by the operation of subsection 178(2).

  • Marginal note:Idem

    (2) Where a consumer proposal is annulled or deemed annulled, the rights of the creditors are revived for the amount of their claims less any dividends received.

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 53(F).

 [Repealed, 2005, c. 47, s. 54]

Marginal note:Certain rights limited
  •  (1) If a consumer proposal has been filed in respect of a consumer debtor, no person may terminate or amend any agreement, including a security agreement, with the consumer debtor, or claim an accelerated payment, or the forfeiture of the term, under any agreement, including a security agreement, with the consumer debtor, by reason only that

    • (a) the consumer debtor is insolvent, or

    • (b) a consumer proposal has been filed in respect of the consumer debtor

    until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

  • Marginal note:Idem

    (2) Where the agreement referred to in subsection (1) is a lease, subsection (1) shall be read as including the following paragraph:

    • “(c) the consumer debtor has not paid rent in respect of a period preceding the filing of the consumer proposal.”

  • Marginal note:Idem

    (3) Where a consumer proposal has been filed in respect of a consumer debtor, no public utility may discontinue service to that consumer debtor by reason only that

    • (a) the consumer debtor is insolvent,

    • (b) a consumer proposal has been filed in respect of the consumer debtor, or

    • (c) the consumer debtor has not paid for services rendered, or material provided, before the filing of the consumer proposal

    until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

  • Marginal note:Certain acts not prevented

    (4) Nothing in subsections (1) to (3) shall be construed

    • (a) as prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the filing of the consumer proposal; or

    • (b) as requiring the further advance of money or credit.

  • Marginal note:Provisions of section override agreement

    (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to subsections (1) to (3) is of no force or effect.

  • Marginal note:Powers of court

    (6) The court may, on application by a party to an agreement or by a public utility, declare that this section does not apply, or applies only to the extent declared by the court, where the applicant satisfies the court that the operation of this section would likely cause it significant financial hardship.

  • Marginal note:Eligible financial contracts

    (7) Subsection (1) does not apply in respect of an eligible financial contract.

  • Marginal note:Permitted actions

    (8) Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract:

    • (a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and

    • (b) any dealing with financial collateral including

      • (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

      • (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

  • Marginal note:Net termination values

    (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values.

  • 1992, c. 27, s. 32;
  • 2004, c. 25, s. 42(E);
  • 2005, c. 47, s. 55;
  • 2007, c. 29, s. 94.
Marginal note:Assignment of wages
  •  (1) An assignment of existing or future wages made by a consumer debtor before the filing of a consumer proposal is of no effect in respect of wages earned after the filing of the consumer proposal.

  • Marginal note:Assignment of debts at request of administrator

    (2) In order to ensure compliance with the terms of a consumer proposal, the administrator may, at any time after the consumer proposal is filed, require of, and take from, the consumer debtor an assignment of any amount payable to the consumer debtor, including wages, that may become payable in the future, but no such assignment can, unless the consumer debtor agrees, be for an amount greater than is due and payable pursuant to the terms of the consumer proposal.

  • Marginal note:Third parties protected

    (3) An assignment made pursuant to subsection (2) is of no effect against a person owing the amount payable until a notice of the assignment is served on that person.

  • Marginal note:When section ceases to apply

    (4) This section ceases to apply where the consumer proposal is refused by the creditors or by the court, or is withdrawn, annulled or deemed annulled.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 57.
Marginal note:No dismissal, etc., of employee

 No employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of that consumer debtor.

  • 1992, c. 27, s. 32.
Marginal note:Amendment to consumer proposal

 If an administrator files an amendment to a consumer proposal before the withdrawal, refusal, approval or deemed approval by the court of the consumer proposal, or after the approval or deemed approval by the court of the consumer proposal and before it has been fully performed or annulled or deemed annulled, the provisions of this Division apply to the consumer proposal and the amended consumer proposal, with any modifications that the circumstances require, and, for that purpose, the definition consumer debtor in section 66.11 is to be read as follows:

consumer debtor

consumer debtor means an individual who is insolvent;

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 56.
Marginal note:Certificate if consumer proposal performed
  •  (1) If a consumer proposal is fully performed, the administrator shall issue a certificate to that effect, in the prescribed form, to the consumer debtor and to the official receiver.

  • Marginal note:Effect if counselling refused

    (2) Subsection (1) does not apply in respect of a consumer debtor who has refused or neglected to receive counselling provided under paragraph 66.13(2)(b).

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 56.
Marginal note:Administrator’s accounts, discharge

 The form and content of the administrator’s accounts, the procedure for the preparation and taxation of those accounts and the procedure for the discharge of the administrator shall be as prescribed.

  • 1992, c. 27, s. 32.
Marginal note:Act to apply
  •  (1) All the provisions of this Act, except Division I of this Part, in so far as they are applicable, apply, with such modifications as the circumstances require, to consumer proposals.

  • Marginal note:Where consumer debtor is bankrupt

    (2) Where a consumer proposal is made by a consumer debtor who is a bankrupt,

    • (a) the consumer proposal must be approved by the inspectors, if any, before any further action is taken thereon;

    • (b) the consumer debtor must have obtained the assistance of a trustee who shall act as administrator of the proposal in the preparation and execution thereof;

    • (c) the time with respect to which the claims of creditors shall be determined is the time at which the consumer debtor became bankrupt; and

    • (d) the approval or deemed approval by the court of the consumer proposal operates to annul the bankruptcy and to revest in the consumer debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the consumer debtor, unless the terms of the consumer proposal otherwise provide.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 58.
 
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